A firm that is NOT maximizing profits
A. is likely to face legal prosecution from the Department of Commerce.
B. may find it difficult to raise financial capital from external capital markets.
C. would never be able to operate in the United States.
D. must not be owned by stockholders.
Answer: B
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Which of the following transactions would count in GDP?
a. Kerry buys a new sweater to wear this winter. b. Patricia receives a Social Security check. c. Roberto gives his daughter $50 for her birthday. d. Latika sells $1,000 of Google stock. e. Karen buys a new car. f. Amy buys a used car.
If the price of a pizza increases and the demand curve for pizza does not shift, then the consumer surplus from pizza will ________
A) increase B) decrease C) equal the producer surplus if the market produces the efficient quantity of pizza D) remain the same
Studies strongly suggest that advertising strategies are generally much more effective than pricing strategies as a means to increase market share
Indicate whether the statement is true or false
Product innovation:
A. is accurately reflected in the basket of goods. B. is not an issue for the CPI since it uses a fixed basket of goods and services. C. doesn't cause the CPI to be overestimated. D. presents a problem for those calculating the CPI because they use a fixed basket of goods.